Search for Small Business Loan Sources and receive your matched lender list AND received FOUR free Business eBooks worth $39.95!

Small business loans from traditional banks and lenders are often considered the gold standard among business owners. They typically offer the lowest interest rates, the most generous loan terms and the highest dollar amounts. One of the long-standing drawbacks to traditional business bank loans, however, is that they often take weeks or months to secure. The application process can be tedious and resource draining, and even when a business owner has the good credit and assets to qualify, he may need the working capital long before the approval procedures are finished.

The next best option for small businesses up until now has been online non-bank lenders like OnDeck and Biz2Credit. These types of firms offer loans of up to roughly $40,000 that can be available within days rather months. These lenders use creative credit scoring in order to approve borrowers without all the red tape of traditional loans. The downside to online business loans though is that they are much more expensive – the annual percentage rates (APRs) can reach upwards of 50 percent.

Recently several banks have been trying to make those long waits a thing of the past. Banks such as JP Morgan Chase, Customers Bank, Eastern Bank and Regions Bank have all started offering quicker, online loan options either with their own systems or by partnering with online lenders. These new hybrid loans can provide business owners with much larger loans than regular online loans, with limits of up to $100,000. These loans utilize similar innovative credit scoring methods to approve borrowers digitally within days. Borrowers can sometimes receive cash the same day they apply. And perhaps the best part is that the APRs on these small business loans can be as low as 7 to 10 percent.

Each loan will have its own unique terms and borrowers should be thorough in researching the requirements. Small business owners should especially be aware that the loans can be resold to third-parties, but overall these types of loans might help reshape the future for faster, affordable small business lending.

Search for Small Business Loan Sources and receive your matched lender list AND received FOUR free Business eBooks worth $39.95!